BlockFi Given 48 Days to File Chapter 11 Exit Plan
• BlockFi, a lender of digital assets, was given additional time to submit a bankruptcy exit plan by a New Jersey bankruptcy judge in the United States on April 19.
• The company is estimated to owe up to $10 billion to over 100,000 creditors and has been granted a 48-day extension until May 15.
• BlockFi’s lawyers requested an extension due to the scale and complexity of the Chapter 11 cases, and Judge Michael Kaplan deemed it worthwhile for an extension for the smooth continuation of the case.
BlockFi Granted Additional Time
Crypto lender BlockFi was granted extra time by a New Jersey bankruptcy judge to file an exit plan exploring potential sale of company assets or restructuring. The firm was given a 48-day extension until May 15th.
BlockFi owes up to $10 billion to over 100,000 creditors. A committee of customers argued they should be allowed to take control of the bankruptcy case so cryptocurrency held on the platform can be returned to creditors immediately.
Reason For Extension Request
The company requested an extension due to the scale and complexity of their Chapter 11 cases. Their lawyer stated that “much work remains” in order for them to present a plan by March 27th according their obligations under bankruptcy code which requires debtors submit within 120 days from filing date.
Judge Michael Kaplan decided it was worthwhile for an extension in order for this case can continue smoothly and granted BlockFI with shorter than expected deadline extension.
Although Judge Kaplan rejected customer’s appeal regarding taking control over Bankruptcy Case, he still chose to grant BlockFI with deadline extension that would ensure smooth continuation of this case .